The psychology of pricing

[Joseph R.]

This is sort of a weird question but bear with me......I work for a builder and am also an investor on one of our projects - we do new construction spec builds in higher end areas usually between 1M-2M......we've been sitting with our house a little longer then we expected at this point - we dropped the price 70,000 from the initial listing price and am contemplating our next move if we don't get bites in the next couple weeks....my question is how much of a drop is worthwhile? For example say a house is 1.1M - if you drop the house to 1,090,000 (10k drop) do you think this accomplishes anything? I don't think this brings in a new set of buyers but does show realtors that we are willing to work with a lower priced offer.....on the flip side lowering if in 50k increments brings in new buyers but also costs us 40k over the 10k drop......I'm not sure if there's a right answer here but would love to get some feedback.